FleetPartners Announces Successful Pricing of NZ$300m Asset Backed Securitisation
FPR (FPR) Share Update November 2024 Monday 4th
FleetPartners Successfully Prices NZ$300m Asset Backed Securitisation
FleetPartners Group Limited has announced the successful pricing of a NZ$300 million asset backed securitisation, marking a significant financial milestone for the company.
Instant Summary:
- FleetPartners prices NZ$300m asset backed securitisation.
- ABS supported by New Zealand lease receivables.
- Series 2024-1 of the FP Ignition Trust 2011-1.
- ANZ and Westpac acted as Joint Lead Managers.
- Settlement expected on 15 November 2024.
Transaction Details
FleetPartners Group Limited has announced the pricing of its fourth New Zealand asset backed securitisation, Series 2024-1 of the FP Ignition Trust 2011-1. This NZ$300 million securitisation is supported by New Zealand operating and finance lease receivables, originated by FleetPartners. The transaction includes various classes with provisional ratings from Moody's, ranging from Aaa(sf) to B3(sf), and margins over 1-month BKBM ranging from 1.22% to 5.90%.
The breakdown of the classes is as follows: Class A with a rating of Aaa(sf) amounts to NZ$204.9 million, Class B rated Aa2(sf) is NZ$16.5 million, Class C rated A3(sf) is NZ$18.0 million, Class D rated Baa3(sf) is NZ$9.0 million, Class E rated Ba3(sf) is NZ$16.2 million, and Class F rated B3(sf) is NZ$14.4 million. Additionally, the seller retains a not rated portion of NZ$21.0 million.
Strategic Importance
James Owens, FleetPartners' Chief Financial Officer, emphasized the strength of the company's core competencies, particularly in credit underwriting and residual value risk management. These competencies have been crucial in achieving favorable pricing despite subdued economic conditions in New Zealand. The transaction not only frees up funding capacity but also provides further funding certainty and diversity, while reducing funding costs for the Group.
Role of Financial Institutions
ANZ Bank New Zealand Limited and Westpac New Zealand Limited acted as Joint Lead Managers for this transaction, with settlement expected to occur on 15 November 2024. The successful pricing of this securitisation highlights the confidence of investors in FleetPartners' financial strategies and the robustness of its asset management.
This successful pricing of the NZ$300 million asset backed securitisation is a positive development for FleetPartners, enhancing its funding capacity and reducing costs. It reflects strong investor confidence in the company's financial management and strategic direction. The transaction is likely to strengthen FleetPartners' market position and could positively influence its stock price.
Investor Reaction:
Analysts are likely to view this development as a testament to FleetPartners' robust financial management and strategic foresight. The successful pricing amidst challenging economic conditions may bolster investor confidence, although some may remain cautious given the broader economic environment.
Conclusion:
FleetPartners' successful pricing of the NZ$300 million asset backed securitisation demonstrates its financial strength and strategic acumen. Investors should consider the potential long-term benefits of this transaction and monitor future developments closely.